Moving money from South Africa to the UK

Options
Taan
Taan Posts: 1 Newbie
in Savings & investments
I would like to get some advice on what to do with savings I have in South Africa. At the moment I get about 6.6% interest on the money in an account in South Africa. I need to give 3 months notice if I want to move the money. With the pound that has fallen slightly I am wondering if it would be a good time to move the money to the UK? I probably won't get a v good interest rate in the UK though. I see there are some fixed rates of about 4% for 2 year savings. I want to use the money in about 2.5 years so can have it on a fixed rate till then.

Advice would be welcomed. Thanks

Comments

  • ColdIron
    ColdIron Posts: 9,050 Forumite
    First Anniversary Name Dropper Photogenic First Post
    Options
    Taan wrote: »
    I see there are some fixed rates of about 4% for 2 year savings
    Those aren't simple savings accounts, you'll do well to get 1.5%
    http://www.thisismoney.co.uk/money/article-1621507/Best-savings-rates-Fixed-rate-accounts.html
  • Voyager2002
    Voyager2002 Posts: 15,285 Forumite
    Name Dropper First Post First Anniversary Combo Breaker
    Options
    What currency is it in, and do you expect that currency to perform better or worse than the pound?

    Have you checked what documents you need in order to take the money out of the country? South African may have rules that restrict this kind of activity...

    You could also consider a dollar or sterling account with a South African bank.
  • soulsaver
    soulsaver Posts: 5,969 Forumite
    Name Dropper First Anniversary First Post
    Options
    If you haven't, check first that a UK bank will exchange SA Rand for £UK other than in small amounts... it's not a given.
    Top Easy Access acs Ranked by rate: Top of The Pots - **No Chat** — MoneySavingExpert Forum
  • Sanctioned_Parts_List
    Sanctioned_Parts_List Posts: 491 Forumite
    First Anniversary Name Dropper First Post Combo Breaker
    Options
    While your at it, check the current exchange control limits. Last I looked, RSA had quite a low ceiling on what can be transferred each year.
  • Voyager2002
    Voyager2002 Posts: 15,285 Forumite
    Name Dropper First Post First Anniversary Combo Breaker
    Options
    Sanctioned_Parts_List wrote: »
    While your at it, check the current exchange control limits. Last I looked, RSA had quite a low ceiling on what can be transferred each year.

    Another reason for looking at dollar accounts within South Africa... or buying gold nuggets to carry in hand-luggage!
  • eskbanker
    eskbanker Posts: 31,034 Forumite
    First Anniversary Name Dropper Photogenic First Post
    Options
    Taan wrote: »
    With the pound that has fallen slightly
    Without wishing to succumb to tabloid hysteria, what would you consider to be a significant fall?! Almost 25% in a few months seems quite notable to me....
  • steampowered
    steampowered Posts: 6,176 Forumite
    First Anniversary Name Dropper First Post
    Options
    Yes, now is probably a good time to do it while the value of the pound is at a 31-year low.

    Use a currency exchange service (I used clearfx and thought it was great). They will get you much lower fees and a much better exchange rate than your bank.

    You will get a better interest rate in South Africa but that is because inflation is higher over there. You would expect inflation to erode the value of your savings over time, which will depress the exchange rate.

    As you can see from a graph like http://www.xe.com/currencycharts/?from=ZAR&to=GBP&view=2Y the ZAR has been steadily devaluaing against the pound for some time now, and despite the spike following Brexit, you would expect that to trend to continue while they have higher inflation than us.

    So although you are getting 6% interest in South Africa, in reality you might not be any better off than having a lower rate in the UK.
This discussion has been closed.
★ ★ ★ Meet your Ambassadors

Categories

  • All Categories
  • 343.2K Banking & Borrowing
  • 250.1K Reduce Debt & Boost Income
  • 449.7K Spending & Discounts
  • 235.3K Work, Benefits & Business
  • 608K Mortgages, Homes & Bills
  • 173.1K Life & Family
  • 247.9K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards